minnesota chamber grow minnesota! 2013 annual report

Annual Report

GROW MINNESOTA! 2013 RESULTS

GROW MINNESOTA! 2013 RESULTS

• 902 one‐on‐one business retention visits– 234 in Metro Area, 668 in Greater MN

• 27% are revisits– 19% in Metro Area, 29% in Greater MN

• 195 firms assisted, affecting 3,865 jobs– 51 in Metro Area, 144 in Greater MN

TOP BUSINESS SECTORS VISITED

• Manufacturing – 31%• Retail Trade – 11%• Professional/Scientific/Technical Services – 8%• Finance/Insurance – 6%• Construction – 6%

Other visited sectors: Accommodation/Food Services, Health Care, Wholesale Trade, Agriculture/Forestry, Arts/Entertainment/Recreation, Real Estate/Rental and Leasing.

0%10%20%30%40%50%60%70%80%

Sales

Metro Area (N=187)

Greater MN (N=538)

0%10%20%30%40%50%60%70%80%

Profitability

Metro Area (N=157)

Greater MN (N=403)

SALES & PROFITABILITY IN THE LAST YEAR

20%

30%

40%

50%

60%

70%

80%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Metro Area Greater MN

BUSINESSES REPORTING INCREASING SALES

BUSINESSES REPORTING INCREASING PROFITABILITY

20%

30%

40%

50%

60%

70%

80%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013


50%

55%

60%

65%

70%

75%

80%

85%

2005 2006 2007 2008 2009 2010 2011 2012 2013


CREATING NEW PRODUCTS/SERVICES IN THE LAST 2 YEARS

PRIMARY MARKETS

0%

5%

10%

15%

20%

25%

30%

35%

40%

Local United States Minnesota Midwest International

Metro Area (N=222) Greater MN (N=470)

0%

5%

10%

15%

20%

25%

30%

35%

40%

Local United States Minnesota Midwest International None aregrowing


FASTEST GROWING MARKETS

EXPORTING

27% of businesses said they are exporting.– An additional 10% are interested in exporting.

0%

5%

10%

15%

20%

25%

Canada Europe &Russia

Latin America& Caribbean

Japan, Korea,Southeast Asia

Mexico Africa &Middle East

Greater China India, Pakistan,Central/South

Asia

Australia, NewZealand,Oceania

WHAT ARE YOUR NEW INVESTMENT PLANS?

Data from businesses that told Grow Minnesota! their investment plans. Percentages are greater than 100% since some businesses have plans for more than one of these investments.

0%

10%

20%

30%

40%

50%

60%

Invest in new facilities Make major equipmentpurchases

Renovate/Expand currentfacilities


BUSINESSES REPORTING EXPANSION PLANS

15%

20%

25%

30%

35%

40%

45%

2005 2006 2007 2008 2009 2010 2011 2012 2013


60%

65%

70%

75%

80%

85%

90%

95%

2005 2006 2007 2008 2009 2010 2011 2012 2013

EXPANSION PLANS: % GROWING IN MINNESOTA


WHY ARE BUSINESSES INVESTING OUTSIDE MN?

• Access to markets (39)• No room at current location (22)• High state and/or local taxes (16)• Access to labor (15)• Transportation/Infrastructure (10)

0%

10%

20%

30%

40%

50%

60%

Increase Stable Decrease Unsure


JOBS IN THE NEXT YEAR

ADDED JOBS IN THE LAST YEAR

0%

10%

20%

30%

40%

50%

60%

70%

2005 2006 2007 2008 2009 2010 2011 2012 2013

Metro Area ‐ Added Jobs Greater MN ‐ Added Jobs

46%

53%

1%

Metro Area (N=158)

Yes

No

Unsure

54%

45%

Greater MN (N=381)

DIFFICULTY RECRUITING EMPLOYEES?

0%

10%

20%

30%

40%

50%

60%

2008 2009 2010 2011 2012 2013

Metro Area ‐ Trouble Recruiting Greater MN ‐ Trouble Recruiting

TROUBLE RECRUITING IN THE LAST YEAR

TROUBLE RECRUITING

0% 3% 6% 9% 12% 15% 18%

IT and Web, Actuaries, Statisticians

Executives, Managers

Architects,Engineers, Cartographers

Sales Agents, Real Estate Agents

Construction, Trades Workers

Production and Assembly


HIGHEST RATED ATTRIBUTES

1. Recreational opportunities

2. Social organizations/networks

3. Cultural opportunities4. Overall workforce

quality5. Higher education

1. Recreational opportunities

2. Electric reliability3. K‐12 education4. Social organizations/

networks5. Lending by local

financial institutions


LOWEST RATED ATTRIBUTES

1. State taxes2. Health care costs3. Workers’

compensation rates

4. Unemployment insurance

5. Laws affecting civil litigation

1. State taxes2. Health insurance

requirements3. Health care costs4. Worker’s

compensation rates

5. Unemployment insurance


IMPROVING MN’S BUSINESS CLIMATE – PROGRESS?

ATTRIBUTE ONMN CHAMBER AGENDA?

RECOMMENDATION PROGRESS?

Health care costs Pay for outcomes, not procedures

2008 legislation has reduced ‘s

State taxes Repeal the B2B sales taxes; federal conformity

#1 priority for 2014

Health insurance requirements

Eliminate mandates; more defined contribution plans

Losing ground. Mandate added in 2013

Workers’ comp rates

Reduce health care expenses (over 1/3)

DOLI report to legislature, 2014

Unemployment insurance

Retain current benefits and financing.

Rate reduction adopted in 2013

GROW MINNESOTA! PARTNERSAlbert Lea-Freeborn County

w/ Albert Lea Economic Development AgencyAlexandria Lakes Area Area Partnership for Economic Expansion (APEX) w/ Duluth Area Apple Valley Austin Area Bemidji Area Bloomington Blooming Prairie ChamberBrainerd Lakes Chamber w/ Brainerd Lakes Area Econ. Development CorpBurnsville Cambridge Area Dakota County Regional Detroit Lakes Regional Eden Prairie Edina Elk River Area Fairmont Area w/ Fairmont Economic Development,

IGNITE - Martin CountyFaribault Area & TourismFergus Falls Area Forest Lake Area Greater Mankato Growth Inc.Hastings Area & Tourism BureauHibbing Area Hutchinson Area I94 West International Falls Area Isanti Area Itasca Economic Development Corp. (IEDC) w/ Grand Rapids Area Chamber

Lake City w/ Lake City Economic DevelopmentLitchfield Long Prairie Area Marshall Area MetroNorthMinneapolis Regional New Ulm Area North Hennepin Area Owatonna Area and TourismPark Rapids Area Princeton Area w/ City of Princeton Econ. DevelopmentRedwood Area Chamber & Tourism w/ Redwood Area Development Corp. Richfield River Heights w/ Progress PlusRochester Area w/ Rochester Area Economic Development Inc.Saint Cloud Area Saint Paul Area Shakopee Area SouthWest Metro Thief River Falls Area Twin Cities North TwinWestTwo Harbors Area Waconia Waseca Area

White Bear Area Chamber w/ White Bear Lake Economic Development Corp.

Willmar Lakes Area Winona Area Worthington Area

minnesota chamber grow minnesota! 2013 annual report

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